Question: On January 1 , 2 0 1 2 , a company purchased equipment at a contract price of $ 5 6 , 0 0 0

On January 1,2012, a company purchased equipment at a contract price of $56,000. The company
made a cash down payment of $6,000 and signed a 3 year, 6% non-interest bearing note for the
balance, due on December 31,2014. Interest is compounded annually.
2. The equipment account would be debited for what amount on January 1,2012?
A. $48,000
B. $47,040
C. $42,000
D. $41,000
E. $45,920

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